Logo

MERC

Mercer International Inc.

MERC

Mercer International Inc. • NASDAQ
$1.81 ▲ 1.12% (+0.02)
Market Cap $121.24 M
52w High $8.28
52w Low $1.48
Dividend Yield 0.23%
P/E -0.7
Volume 281.96K
Outstanding Shares 66.98M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $458.068M ▲ $68.26M ▲ $-80.779M ▲ -17.635% ▲ $0 ▲ $2.016M ▲
Q2-2025 $453.524M ▼ $30.43M ▲ $-86.071M ▼ -18.978% ▼ $-1.29 ▼ $-22.001M ▼
Q1-2025 $506.974M ▲ $29.704M ▲ $-22.339M ▼ -4.406% ▼ $-0.33 ▼ $46.903M ▼
Q4-2024 $488.405M ▼ $25.787M ▼ $16.707M ▲ 3.421% ▲ $0.25 ▲ $97.308M ▲
Q3-2024 $502.141M $29.156M $-17.559M -3.497% $-0.26 $50.364M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $98.102M ▼ $2.291B ▼ $1.931B ▼ $359.532M ▼
Q2-2025 $146.499M ▼ $2.378B ▲ $1.932B ▲ $446.491M ▲
Q1-2025 $181.473M ▼ $2.336B ▲ $1.899B ▲ $437.351M ▲
Q4-2024 $184.925M ▼ $2.263B ▼ $1.833B ▼ $429.775M ▼
Q3-2024 $238.995M $2.503B $1.986B $516.768M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-80.779M ▲ $-30.054M ▼ $-27.613M ▼ $10.954M ▲ $-48.397M ▼ $-60.071M ▼
Q2-2025 $-86.071M ▼ $-4.526M ▼ $-22.773M ▼ $-3.268M ▼ $-34.974M ▼ $-28.857M ▼
Q1-2025 $-22.339M ▼ $-2.989M ▼ $-19.86M ▼ $19.246M ▲ $-3.452M ▲ $-23.071M ▼
Q4-2024 $16.707M ▲ $71.158M ▲ $-6.451M ▲ $-119.052M ▼ $-54.07M ▼ $50.448M ▲
Q3-2024 $-17.559M $-13.945M $-22.903M $12.728M $-24.178M $-41.209M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Biofuels
Biofuels
 $20.00M ▲$10.00M ▼$10.00M ▲$10.00M ▲
Energyandchemicals
Energyandchemicals
 $60.00M ▲$30.00M ▼$20.00M ▼$30.00M ▲
Lumber
Lumber
 $110.00M ▲$70.00M ▼$70.00M ▲$60.00M ▼
Manufactured Products
Manufactured Products
 $50.00M ▲$20.00M ▼$10.00M ▼$10.00M ▲
Pallets
Pallets
 $50.00M ▲$20.00M ▼$30.00M ▲$30.00M ▲
Pulp
Pulp
 $700.00M ▲$360.00M ▼$310.00M ▼$320.00M ▲
Wood Residuals
Wood Residuals
 $0 ▲$0 ▲$0 ▲$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Mercer’s income statement shows a clear cycle: strong profitability in 2021–2022, followed by a sharp downturn and only a partial recovery so far. Revenue has generally trended upward over the last five years, with a peak during the boom conditions of 2022 and slightly lower sales since then, but still well above early‑period levels. The issue is not demand collapse, but profitability pressure. Margins tell the real story. After very healthy profits in 2021–2022, 2023 saw a squeeze so severe that gross profit turned negative and operating results swung to a sizable loss, reflecting weak pulp pricing, higher costs, or both. In 2024, gross and operating profit have moved back into positive territory, indicating better pricing, mix, or cost control, but the company is still losing money at the net income level. Earnings per share have been negative for two years in a row. Overall, Mercer looks like a cyclical business coming off a downturn: sales are holding up reasonably well, but profitability has not yet fully recovered to prior highs, and the bottom line remains under pressure.

Balance Sheet

Balance Sheet The balance sheet reflects a capital‑intensive business that has leaned more on debt as profitability has weakened. Total assets have been fairly stable over the past few years, with only modest variation. This suggests Mercer still has a substantial and largely intact industrial asset base in mills, plants, and equipment. Debt has risen compared with the start of the period, while equity has shrunk as recent losses have accumulated. That combination means leverage is now meaningfully higher than it was a few years ago. Cash on hand has also drifted down from earlier levels, trimming the company’s financial cushion. In simple terms, Mercer still has solid physical assets, but the balance sheet has become more stretched, with less equity support and a greater reliance on borrowing than earlier in the decade.

Cash Flow

Cash Flow Cash flow has been volatile, mirroring the earnings cycle, and feels tight but still manageable. In strong years, notably 2022, Mercer generated solid cash from operations and respectable free cash flow after investments. In weaker years, particularly 2023, operating cash flow turned negative and free cash flow dipped clearly into the red, highlighting the impact of lower margins and working‑capital swings. In 2024, operating cash flow has returned to a small positive level, and free cash flow is just above break‑even. This improvement is encouraging but leaves limited room for error, especially given that capital spending has stayed consistently meaningful throughout the period. Overall, the company is funding ongoing investments, but has less spare cash than in its peak year. Sustained improvement in operating cash generation will be important to comfortably cover capex, interest, and any debt obligations.

Competitive Edge

Competitive Edge Mercer operates in a tough, commodity‑influenced sector, but its asset quality, product mix, and sustainability focus give it some notable advantages. On the traditional side, it is a major producer of high‑quality softwood pulp, backed by relatively modern and efficient mills. These assets help keep unit costs competitive and environmental performance relatively strong, which matters both for regulators and for global brand‑name customers. Where Mercer differentiates itself is in its move up the value chain. The expansion into mass timber positions it in a higher‑value construction niche that benefits from the shift toward low‑carbon building materials. Its scale in North American mass timber, plus reference projects like large corporate campuses, supports credibility with architects, developers, and contractors. Vertically, Mercer’s control over fiber supply, logistics innovations (such as dedicated electric rail), and focus on using every part of the log (pulp, lumber, energy, and chemicals) bolster its cost position and sustainability profile. However, it still competes against sizable global players in pulp and engineered wood, and remains exposed to cyclical pricing, housing demand, and energy and input costs. In sum, the company combines solid industrial assets with a growing presence in higher‑value, sustainability‑driven segments, but operates in markets that can swing sharply with the global economy.

Innovation and R&D

Innovation and R&D Innovation is one of Mercer’s clear bright spots, and it is tightly tied to the global push toward a bio‑based and circular economy. The Mercer Lignin Center is a cornerstone initiative: it turns what was historically a low‑value by‑product into a platform for new materials in batteries, adhesives, bio‑oils, and bioplastics. If scaled successfully, this could create new revenue streams less tied to pulp cycles and more linked to specialty chemicals and advanced materials. The Mercer Fibre Centre and related R&D work allow the company to fine‑tune fiber properties and collaborate directly with customers, improving product performance and deepening relationships. Mercer is also involved in nanofibrillated cellulose, an emerging biomaterial space with potential uses in lightweight composites and advanced coatings, and is exploring carbon capture at one of its mills. These projects show a deliberate shift from being a traditional pulp producer to becoming a broader biorefinery and engineered‑wood innovator. The main risks are typical for innovation: execution challenges, uncertain market adoption, long development cycles, and the need for continued investment at a time when profits and free cash flow are under pressure.

Summary

Mercer International looks like a cyclical, asset‑heavy forest products company that is trying to reinvent itself for a low‑carbon, bio‑based future. Financially, the last five years show a strong run into 2022 followed by a sharp downturn in 2023 and only a partial recovery so far. Revenue has held up better than profits, and while operating results have improved recently, the company is still posting net losses, with leverage higher and cash cushions thinner than earlier in the decade. Cash generation has been uneven, with just modest free cash flow in the latest year. Strategically, the picture is more constructive. Mercer has modern mills, a strong position in benchmark pulp grades, and growing scale in mass timber. Its focus on using the entire log for pulp, lumber, energy, and biochemicals, along with investments in lignin, nanocellulose, and carbon projects, aligns well with structural sustainability trends. The key tension is between ambition and financial capacity: the innovation pipeline and value‑added businesses could enhance resilience and margins over time, but they require continued capital and consistent execution in an industry that can be highly cyclical. Observers may want to watch for signs of sustained profitability recovery, stronger and more stable cash flows, progress on debt, and concrete milestones in commercializing new bio‑based products and mass timber growth.

NEWS

November 18, 2025 · 4:30 PM UTC

Mercer International Inc. to Present at Upcoming Investor Conferences

Read more

November 6, 2025 · 4:30 PM UTC

Mercer International Inc. Reports Third Quarter 2025 Results

Read more

October 20, 2025 · 4:53 PM UTC

Mercer International Inc. Announces Conference Call for Third Quarter 2025 Results

Read more